EDINBURGH'S troubled tram project was dealt a new blow yesterday with the resignation of another key figure.
Willie Gallagher is the latest in a long line of senior officials in charge of the £512 million project to quit.
Meanwhile, The Scotsman has learned that the launch of the tram service is almost certain to be delayed – partly due to major chan
ges in the construction timetable that have been imposed by the council.
Mr Gallagher's resignation as executive chairman of TIE, the city council's tram company, came just weeks after a disastrous start to tram-works on Princes Street prompted Steve Cardownie, the local authority's deputy leader, to call for Mr Gallagher's resignation.
Despite widespread criticism of the disruption caused by the project in recent months, Mr Gallagher's decision is still understood to have caught senior council officials by surprise.
His resignation comes just weeks after it emerged that Neil Renilson, the head of Lothian Buses and the official charged with integrating trams and buses, was taking early retirement in December.
The departure of the pair has left the council with a massive gap to fill. It is thought there are no plans to replace either figure for the forseeable future, although an interim appointment is likely within weeks.
Phil Wheeler, Edinburgh's transport convener, last night insisted the project had long passed "the point of no return" and said there was no question of it being scrapped. Despite widespread speculation to the contrary, his officials insisted the project was still "on time and on budget".
In a statement, Mr Gallagher said: "I'm very proud to have created a very strong team of engineering and construction professionals. They are more than equipped to deliver world-class trams for the people of Edinburgh."
Mr Gallagher's predecessor, Michael Howell, quit after being told his contract was not likely to be renewed. Several project directors have also come and gone over the years, some after as little as a few months. Although the council insisted yesterday that Mr Gallagher had stood down for "personal and family reasons", he was under increasing strain because of mounting problems with the project.
Insiders say he had become increasingly disillusioned with a lack of support from senior politicians and officials on the city council. The SNP, which runs the council in coalition with the Lib Dems in Edinburgh, has been one of his biggest critics.
Nationalist MSP Shirley-Anne Somerville last night said Mr Gallagher had brought "unprecedented chaos and disruption" to the streets of Edinburgh and said there should be no question of him receiving a "golden goodbye".
Mr Gallagher was widely blamed for scrapping the full closure of part of Princes Street after just a few hours of chaos in October – despite it being planned for months in advance.
Mr Cardownie led calls for Mr Gallagher to resign after the city centre came to a standstill. The council leader, Jenny Dawe, admitted there had been a "catastrophic failure" of the traffic management arrangements.
Behind the scenes, Mr Gallagher was widely blamed by many council officials. Days later there was anger from businesses when it emerged Mr Gallagher was to earn up to £340,000 in bonuses by 2011 if the project was completed on time.
A planned full closure of Princes Street, due to take place from January to July next year, is almost certain to be shelved, while the council halted work on and around Leith Walk over the festive period to try to appease long-suffering traders.
There are still major doubts over how the council is going to pay for a key stretch of the tram network, linking Haymarket station with the city's waterfront.
A spokesman for the city council last night insisted that Mr Gallagher would not be getting any of kind of pay-off, as he was simply serving a month's notice.
Third of the way there – now can three parties involved get their act together?EDINBURGH'S tram scheme is one third of the way to completion and, until now, has not suffered any major delays or cost increases.
The Scotsman understands that, rather than Willie Gallagher's departure threatening the future of the project, it could instead trigger a shake-up of the main transport bodies involved.
So far, £183 million of the £512 million cost of the Edinburgh airport-Newhaven tram line has been spent. By comparison, £9 million was clocked up on the city's planned congestion charge scheme before it was dropped three years ago.
The first part of the two-stage tram project is due to be completed next spring, while the second phase – tram-line construction – started this summer. In a third contract, trams are due to start rolling off the production line next year.
The continued sniping of SNP ministers about being forced to fund the project, after failing to have it scrapped last year, has not boosted confidence.
However, Edinburgh is one of only about three European capitals without trams, and the city would be unique if the 11-mile line did not spark clamour for extensions after its expected opening in 2011.
Indeed, The Scotsman revealed in August that the Scottish Government was not against trams in principle – just the current scheme.
Experts said the city had learned lessons from English tram schemes by moving all the underground pipes and cables from the route in one go, and appointing a tram operator four years ago to ensure a smooth launch. However, the progress masks an increasingly fractious relationship between the tram firm Tie, its city council masters, and Lothian Buses, the council-owned operator.
They are essentially all parts of the same organisation, yet traffic chaos caused by botched tram roadworks at The Mound saw them at loggerheads, with Tie taking the blame.
The situation was further confused by conflicting statements from the local authority , which is jointly run by the pro-tram Liberal Democrats and the SNP, which is opposed to the scheme.
One official told The Scotsman: "There was a perception the three bodies were not as one, with the council floundering.
"This is an opportunity for a leaner structure that is better suited to arguing for money from the Scottish Government for more tram lines and other investment for the city."
The full article contains 1051 words and appears in The Scotsman newspaper.
